Bitcoin Cash Price Analysis

After a major downside correction, bitcoin cash price started a fresh increase above the $390 and $400 resistance levels against the US Dollar. The BCH/USD pair settled above the $400 level and it recently tested the $410 resistance area.

The price is currently consolidating and it seems like the price may continue to rise above the $410 and $415 resistance levels. On the downside, the main supports are $402, $400 and $395.

Binance Coin (BNB), EOS, Tron (TRX) Price Analysis

EOS price climbed above the $6.15 and $6.20 resistance levels. It opened the doors for more gains and the price recently traded above the $6.35 level. The next key resistance is near the $6.45 and $6.50 levels, above which the price could accelerate above the $6.60 level.

Tron price managed to stay above the $0.0265 support level and recently moved above the $0.0272 level. TRX price is currently trading above the $0.0280 level, with many resistances on the upside near $0.0290 $0.0292.

Binance coin (BNB) is performing really well and gaining momentum above the $30.00 and $32.00 levels. BNB price broke the $35.00 level recently and it seems like it could accelerate above the $36.00 level. On the downside, the price may find strong bids near the $34.20 and $33.50 levels.

Looking at the total cryptocurrency market cap 4-hours chart, there was a slow and steady rise above the $225.0B and $230.0B levels. The market cap even broke the $240.0B resistance and a major contracting triangle resistance. It moved towards the $245.0 level and it is currently consolidating gains. An initial support is near the $240.0B level, below which the market cap could find support near the $232.0B level. The main support is near the $226.0B level and the triangle lower trend line at $226.5B. The overall technical structure is positive and it seems like the market cap could continue higher towards $245.0B and $250.0B. Therefore, there could be gains in bitcoin, Ethereum, TRX, LTC, EOS, ripple, ADA, XLM, WTC, BCH, and ICX.

It may sound like a 2014-era shitcoin, but Globalcoin is this year’s most anticipated new digital asset. It doesn’t matter that it’s not decentralized, not permissionless, and not even crypto. The only question that really matters is what does Facebook’s currency spell for bitcoin? Will it steal its thunder or accelerate bitcoin adoption?

Globalcoin: Coming Soon to a World Near You

If Mark Zuckerberg had hoped to convince the world that he’s a normal guy, and not a shape-shifting Illuminati reptilian, Globalcoin has scuppered that. It’s the name that satirists would have dubbed Facebook’s forthcoming currency, had Zuck not gone and claimed it for himself. Like Facebook itself, Globalcoin (GC) is easy to mock and easier to meme, but away from the easy one-liners, what’s known about the coin and what effect – if any – will it have on cryptocurrency?

GC is scheduled to launch in Q1 2020. Lest confirmation were needed as to how entrenched in the legacy financial system Zuck bucks will be, Facebook’s CEO has reportedly met with Bank of England governor Mark Carney as well as seeking advice from the U.S. Treasury. Project Libra, as the program is known, has been one of the world’s worst kept secrets since 2018, when it emerged that Facebook was seeking to hire blockchain developers for a covert monetary project.

GC will be nothing more than another fiat-pegged stablecoin, which is unremarkable. The coin’s real power comes in the network effects that can be leveraged to get the currency into the hands of billions, including Facebook users who don’t have bank accounts. The benefits this could bring to Facebook-loyal consumers, who can seamlessly use the coin in-app (be it FB, Insta, or Whatsapp) to pay friends and purchase goods, are substantial. But the benefits this powerful new trove of data will bring Facebook are bigger still.

A Cash Grab From the World’s Data Despots

Facebook’s extremely shitty attitude towards protecting user privacy does not need reiterating. Indeed, it is hard to think of a worse qualified custodian of a global digital currency. For all its crimes though – deplatforming, unauthorized data sharing, censorship and flagrant privacy violations – Facebook remains the world’s dominant social network. People are inherently complacent and, save for a handful of privacy purists, there has been no mass exodus of users in the wake of the Cambridge Analytica scandal and similar abuses. It doesn’t matter how much data Globalcoin harvests or who it’s shared with: if the coin works seamlessly, people will use it.

As for quite how crypto Facebook’s crypto is, the answer is “not very.” As a permissioned currency, just like the permissioned social network it lives inside, it’s irrelevant whether GC runs on a blockchain or an SQL database. No amount of nodes or validators will change the fact that your globalcoins are only yours provided you use them for the purpose that Zuckerberg intended. Play by the rules, and you’ll be just fine. Step out of line, however, and expect to see your account balance emptied and wallet frozen. As Bloomberg put it, “More than 2 billion users spending one currency, controlled by one billionaire. What’s to worry about?,” noting that Dr Evil would love Globalcoin.

What Globalcoin Means for Bitcoin

As for what GC means for bitcoin, there are essentially two schools of thought. One holds that GC holds a genuine threat in giving the masses the benefits of crypto – fast settlement, low fees, wrapped in a package that even grandma can understand – with none of the downsides, such as volatility, complexity, or the irreversible loss of funds. In this paradigm, GC will replace BTC as a medium of exchange (MoE), leaving bitcoin to serve as a store of value (SoV) and for payments that fall outside of Facebook’s purview – like buying drugs. If this comes to pass, then GC could also threaten other MoE cryptos such as BCH, LTC, and DASH.

The other school of thought holds that Globalcoin will serve as a Trojan horse, or gateway drug, to bitcoin. Through normalizing the use of digital currency, it will make the transition to permissionless crypto seem less scary, ensuring that bitcoin is primely placed to onboard the masses when they tire of GC’s limitations: the privacy concerns, the data abuses, and the limited means of spending. In this context, Zuckerberg’s vanilla crypto will get bested by bitcoin, which can outmuscle it on all fronts, save for network effects. With an estimated 30 million cryptocurrency users versus 2.4 billion Facebook users, Globalcoin will launch with a massive advantage.

Didn’t think I’d ever say this, but:

I don’t want to live in a world where mark zuckerberg beats the winklevii.

Love, hate, or fear it, Globalcoin merely represents the inevitable evolution of money. The majority of our spending has already gravitated to the digital realm, be it Paypal, Apple Pay, Visa, Venmo or bitcoin. With the underlying payment network being abstracted away while cash dies a slow death, Globalcoin will take a seat at the table of digital payment solutions, despite offering nothing new. As has been reiterated many times over, bitcoin doesn’t need to take over the world to succeed: it simply needs to survive. It is highly probable that Globalcoin will gain more users in its first month than bitcoin ever has or ever will. That metric, however, is meaningless.

When Facebook users tire of being surveilled, censored, and sold out, bitcoin will be there, as sound money that is beholden to no one and available to everyone.

What are your thoughts on Globalcoin? Let us know in the comments section below.

Images courtesy of Shutterstock.

Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

Changpeng Zhao has filed a claim for compensation against Sequoia Capital (China) for unfairly preventing him from raising funds for Binance, which has since become the biggest crypto exchange in the global market.

The chief executive blamed the venture capital firm for falsely accusing him of breaching exclusivity by initiating parallel discussions with a competition for equity. Zhao said that Sequoia received a December 2017 injunction order in an ex parte procedure without cautioning him, and consequently named him as a claimant in a notice for arbitration filed later in January 2018.

2/ I won, but the case was very damaging. First, Sequoia took out an injunction against me which prevented me from raising finance for Binance at the end of 2017 which was a critical time in the market and when there was huge interest in Binance from other VCs and investors. pic.twitter.com/Y6c5t2ngeb

Three months later, a Deputy High Court Judge said in his judgment that Sequoia “use of the ex parte without notice procedure was an abuse of process,” which allowed Zhao “to seek to set aside the injunction that ground alone.” The judge further ordered Sequoia to compensate Zhao with 25 percent of the legal costs, adding that the Binance CEO could seek a revision in the compensation suggested by the court but within seven days of the ruling.

“Sequoia (China) paid $2,400,000 in legal fees for their part, and lost the case,” revealed Zhao. “I had to front $779,043 for over a year to cover my legal expenses, which eventually was paid by Sequoia because they lost. But I had to front it.”

Loss of Opportunities

Zhao noted that Sequoia took out an injunction order against him at the end of 2017, a period when funding into the crypto/blockchain startups had touched its historic high. The legal conditions eventually discouraged Binance from continuing their deals with other venture capitalists and investors who, according to Zhao, had a “huge interest” in their cryptocurrency exchange.

Cryptocurrency Market Valuation Established its All-Time High at Approx. $815 Billion in January 2018 | Image Credits: CMC

The Binance CEO also accused Sequoia of harming his reputation, adding that “a loophole in the legal system” did not allow him to make April 2018 rulings public. But the fact he got sued was made known right away.

“I have to countersue to make the results public,” stated Zhao.

Startups against Legal Loopholes

Zhao believes the case shows a broader pattern of bullying practiced by the venture capitalist firms all around the world. Most entrepreneurs or startups will not be able to front additional costs to fight a lawsuit, mainly when they have limited funding to develop their products.

“It is a huge distraction to have a legal case while running a startup,” said Zhao. “Many start-ups would have had no choice but to give in to the unfair terms/practices employed by the VC, a very famous VC at that.”

9/ For VCs, this tactic would have worked in most cases. It is a tool legally available to them. It is a weakness in our legal system, and unprofessional behaviour by VCs. VCs are supposed to help entrepreneurs. I don’t know how many other cases like these are out there.

Crypto markets, regardless of their bearish or bullish incline, offer plenty of opportunities to profit from trading. To take advantage of them, you need access to reliable market data and useful indicators.RSI Hunter is a platform that can help you to identify coins that have potential for growth based on their current market positions.

Website Shows Oversold and Overbought Cryptos

The RSI Hunter website lists hundreds of cryptocurrencies and tokens classifying them as oversold, neutral or overbought. Its analysis is based on data pulled from leading digital asset exchanges like Binance, Okex, Bittrex, and others. It also uses several base currencies such as BTC, BNB and USDT to produce comparable results.

Besides choosing a trading platform and a base currency, you can set different timeframes as well – from one minute to one week. RSI Hunter will then offer you examples in all three mentioned categories. The price of each crypto is shown both in U.S. dollars and the respective base currency, along with weekly and monthly highs and lows. Prices and relative strength indexes are updated every minute.

The tables contain a number of relevant indicators including moving average, standard deviation and average volume for various time periods. RSI Hunter supplies you with charts as well, which show the 14-day percentage change in the prices of the coins and tokens. A pivot point is estimated for each cryptocurrency.

To stay in touch with major crypto markets at all times, you can also use Bitcoin Markets. The tool has been developed by Bitcoin.com to provide you with real-time data about the prices and market valuations of hundreds of coins. You can view charts showing changes in price, capitalization, hashrate, and fees for both BCH and BTC using the Bitcoin Charts page.

What other sources showing oversold and overbought crypto assets do you know? Tell us in the comments section below.

Disclaimer: Readers should do their own due diligence before taking any actions related to third party companies or any of their affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any third party content, goods or services mentioned in this article.

Bitcoin is about to get a lot more expensive than it is today, according to Dr. Julian Hosp.

The author of ‘Cryptocurrencies Simply Explained‘ evaluated bitcoin’s future performance based on a textbook indicator that measures abundance in commodity markets. Titled Stock-to-Flow Ratio, the index measures the amount of an asset held in inventories (stock) with its annual production rate (flow). Overall, the ratio describes how much time it would take the Stock to reach the Flow.

Dr. Hosp noted that it would typically take 62 years for available gold to reach from Stock to Flow, which curbs its supply against high demand. At the same time, silver would take approx 22 years to complete a similar flow, making it slightly cheaper than gold.

However, bitcoin would take about 27 years to reach its total circulation of 17.7 million (stock) – at the rate of 657,000 per year. But following the halving, an event that would slash bitcoin’s supply from 12.5 BTC to 6.25 BTC, the bitcoin’s annual Flow would reduce to 328,500 BTC.

Production Rate vs. Price

Gold’s Stock to Flow Ration is Highest Among Commodities

Dr. Hosp said the production was the most crucial factor in determining an asset’s value. Taking cues from Gold, the analyst noted that a higher valued yellow metal typically boosts production since miners expect higher profits which, in turn, increases the Gold’s Stock-to-Flow ratio. Meanwhile, the rise in mining output takes gold to the stage of overproduction, which means supply exceeds demand. As a result, the gold price comes down, makes mining unattractive, reduces the production rate, and eventually pushes the Stock-to-Flow Ratio up.

“In bitcoin,” said Dr. Hosp, “even if the price goes up, you cannot produce more bitcoin – it does not work, not like gold where you can increase production. There is always the same amount of flow because it’s 12.5 bitcoins every minute. The production remains stable.”

Bitcoin SF Model

Dr. Hosp added that bitcoin required to match Gold’s Stock-to-Flow Ratio of 62 years. But because the cryptocurrency’s production is stable, the ratio could only go up by price.

Bitcoin Stock-to-Flow 95% Accurate To Date | Image Credits: PlanB

The analyst applied Bitcoin SF Multiple – a ratio of bitcoin price to its SF model price – to understand the cryptocurrency’s top and bottoms. He found that the indicator had a 95 percent success rate to date, for it accurately called bitcoin’s overvaluation in 2011, 2013, and 2017. At the same time, the indicator was able to notice the cryptocurrency’s undervaluation during 2017 and summer 2018 session.

The SF Multiple showed that the bitcoin rate was 3-13 times higher than its SF model price thrice every time it jumped above 3.

There are also halvings which briefly separated the SF Multiple cycles. As bitcoin’s supply rate got slashed by half, the Stock-to-Flow Ratio will double to 54 (very close to gold). Dr. Hosp predicted it would take the cryptocurrency to at least $100,000, adding:

“Suddenly, we will have way less [bitcoin] production that what we have now. So in order to keep the Stock-t0-Flow Ratio stable, the bitcoin price will need at least to double. But it so much lower right now compared to Gold, if we get closer and close to the [precious metal], the price should approximately to go to a $100,000 – maybe even $300,000.”

There are also questions about who/what would move large amounts of fiat money into the bitcoin market. PlanB, the cryptocurrency analyst who first brought the Stock-to-Flow model to notice, believes that commodity markets, countries with negative interest rates, troubled economies, and institutional investors would more likely invest money in the crypto market.